compliment -- (noun) a formal expression esteem, respect, admiration; a flattering remark; 
(verb) to present with a token of esteem

Being able to accept a compliment graciously really shouldn't be all that hard. But somewhat surprisingly, it is excruciatingly difficult for many people to accept a well-meant compliment. 

Ironically, the people that want or need these compliments the most are the very same ones that have the most trouble acknowledging or accepting them. Frequently, the response is an indicator of one's diminished self-image or feelings of low self-worth. If we feel unworthy of a compliment, we may reflexively attempt to deflect it or make a joke of it. If someone offers a personal compliment that doesn't fit in with our preconceived personal self-image, it is easy to dismiss it as flawed or perhaps even a veiled manipulative attempt to get on our good side or to somehow take advantage of us.

For example, if someone offers us a personal compliment such as, "You really look nice today", our response can be quite telling. If we're not comfortable with our self-worth, these responses may be along these lines:

Imagine that you offer a compliment to a friend or an acquaintance. How would you feel if the compliment is diminished or not accepted? It is as though you had offered the person a gift and they had refused it. 

Even if we feel that a compliment is unwarranted or it somehow makes us feel awkward or uncomfortable, it is more appropriate (and much more polite) to respond along these lines:

As we become more conscious of how we respond to a compliment, we can learn a lot about ourselves. Then, if necessary, we can work toward improving our self-image, thereby making future compliments easier to graciously accept.

"Insults should be written in sand, compliments should be carved in stone."